We'll start with definitions, move into $NC and then a look at one of the most successful, highest interest rate banks in Canada that no longer operates store fronts. 

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Credit card: A credit card is a card issued by a financial company which enables the cardholder to borrow funds. The funds may be used as payment for goods and services. Issuance of credit cards has the condition that the cardholder will pay back the original, borrowed amount plus any additional agreed-upon charges.

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Netcents: Proposed card is sounding a little hazy in definitions, but by all accounts is not supposed to be a credit card (title a bit misleading). Little things like this aggravate me personally. The company should know the parameters of what they are attempting, and therefore should define in more explicit terms what they are doing. A credit card assumes you borrow funds, in this case, you would be borrowing crypto because it's a crypto card. Or, would you be 'instantly' transacting your crypto? This is more like a debit card because your funds exist already. My point here, is that in either case, the card holder will be taking a loss, on the transaction or on the loan of crypto funds. You see, a formal bank like tangerine GIVES YOU cash back for spending. But here, YOU will be paying transaction fees. The incentive to spend crypto using this card needs to have merit. 1% cash back on spending would work and would be competitive in the industry (RBC, CIBC 1% - PC Mastercard does a point system accounting to 1.35%). Mass acceptance is based on perks (tangerine 0.5% cash back on all purchases, choose 3 groups to receive 2% cash back from - hotel, gas, food for example). This is a nice feature!


Take away questions:

1) What are the users incentives? Could I not just sell my crypto and use fiat currencies? This would mean I pay a one time fee and get all my cash back. It's cheaper. Justify the costs of the card, outline a preliminary card structure. 

2) How has the NC structure changed? They are currently utilizing multichain (https://www.multichain.com/), and for the past year and a half have only operated the bare bone node capacity (2). Are we utilizing funds to expand the private network? Multichain even offers to do this for users if they don't have the technical skill to do it themselves: 

Direct quote from link:

Pricing

Commercial Licenses are priced based on network size:

Base price per network: US $25,000/year for the first 4 nodes.

Price per additional node: US $2,500/year.

Discounts are possible for networks of more than 40 nodes.

These prices apply to both MultiChain 1.0 and MultiChain 2.0 Community, now in development. Pricing for MultiChain 2.0 Enterprise will be published closer to the product’s release.

3) Even though travel expenses seem to be taken lightly, are we as investors garnering increased shareholder value from these expenditures? 


Citation:

Tangerine example:
Best Credit Card for Flexible Cash Back

Tangerine Money-Back Card

Eligibility Criteria:

– Credit score required: fair/good

– Min personal income required: $15000

– Annual fees: $0

Cash back is a pretty straightforward perk, but even a straightforward perk should ideally be tailored to a cardholder’s interests. With the Tangerine Money-Back card, it’s easy for cardholders to choose two purchase categories where they’ll earn 2% cash back. The card breaks up purchases into different groups: grocery, furniture, restaurants, hotel-motel, gas, recurring bills, drug store, home improvement, entertainment, and public transit and parking. Cardholders simply need to do an analysis of where they spend the most each month before picking the relevant cash back categories to begin earning.

By choosing to send all or a portion of their cash back to a Tangerine Savings Account, cardholders will earn the right to choose a third cash back category. On purchases not from a chosen category, cash back accrues at 0.5%. The way that cash back is redeemed is also flexible: you’re given your cash back monthly and can decide to apply it to your balance or send it to a savings account.

As an additional perk, other authorized users on your account can receive supplementary cards for free and enjoy earning cash back alongside you. You’ll also enjoy protection for new items purchased with the card and extended manufacturer’s warranties where applicable.